Managing investments to grow your money is critical to achieve financial independence. What were once considered investment options such as RD, FD, land, and house are now distributed across various gold, e-gold, plots, equity, derivatives, bonds, currencies, antiques, and so on. To make better judgments, it is necessary to consult with an investing advisor.
Financial planners, investment advisers, independent financial advisors, agents, and distributors are all available in the market. The range of services you seek from a professional, as well as the amount of money you are ready to pay, can affect your decision.
Ask yourself these questions, why do you need a financial advisor or planner? What services do you seek from them? To know more about it let’s dig in deeper
Why do you need a financial advisor?
Financial advisor can advise you on a variety of financial matters, including whether to invest, which investments are more likely to be beneficial, their analysis of various investment products, and many more. Financial advisors can also assist you in developing an investing strategy, particularly for long-term goals.
A financial counselor can also assist you in making sound financial decisions, which will allow you to save more and invest wisely, among other advantages.
People who design their own financial plans frequently fail to account for one or more factors, with the plan either lacking a realistic approach or failing to properly account for the adequate time component. They may lack sufficient study and understanding before investing, resulting in an unfavorable financial outcome. As a result, seeking the experienced guidance of a financial advisor who is well-versed in finance, markets, and investment while establishing any financial goal will help you achieve higher returns and financial rewards in the future.
Now it is important to understand what we should consider before hiring a financial advisor.
- Certified financial advisors
Now you realize that you need financial advice from the best financial advisor to make your work easier.
Make out the list of SEBI certified financial advisors, thinking why certified financial advisors?
SEBI recognised this gap and issued the Investment Advisers Regulations in 2013 to formalize this profession. To guarantee that the correct people enter this industry, SEBI has specified minimum education qualifications, NISM certification, and experience as admission standards. The regulation aims to eliminate conflicts of interest, increase transparency, and improve the consumer experience.
SEBI Registered Investment Adviser or Investment Adviser refers to Financial Advisers who have been certified by SEBI to perform Financial Advisory services. Only SEBI Registered Financial Advisers are permitted to provide Financial Advice in India, according to the Indian regulations.
- Types of financial advisors based on fee structures
Fee only financial advisors:
These financial advisors, regardless of the portfolio, charge the fixed fee amount from their client. As the fee remains same for all the clients these advisors can show uniformity to their clients.
They provide assistance in the implementation of investments in instruments chosen by the customer, therefore there is no place for conflict of interest. They usually charge on an hourly basis.
They have clear and transparent fee structure and also have legal or ethical bond with the clients.
Fee based financial advisors:
Fee based financial advisors have the fee structure depending on the assets under management. They have licenses that allow them to sell investment and insurance products for a fee. Some experts may charge you an additional fee for their advice.
- Right product for right planning
Check if the financial advisor is really planning or just getting a sales pitch ready without even bothering about your profile. Your financial consultant should be aware of your financial situation. This enables him to select the optimal option for you. But can you trust his advice if he is being paid to market financial products? Of course, endorsing a policy or a fund is not a red flag. There are a substantial number of investors who want to give good product suggestions. Be smart in noticing it.
In order to hire the best financial advisor in India, be clear on what services you need to get from them. Choose SEBI certified financial advisors as there are the right ones to help you in your financial planning and achieving your financial goals.
VBS investments is a SEBI certified financial advisory company, serving our clients with quality and transparency. We can help you with all Financial Planning, Investment Planning, Insurance Planning, Tax Planning advice, get in touch with us over here – www.vbsinvestments.com/contact/